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Wesdome Gold Mines Ltd T.WDO

Alternate Symbol(s):  WDOFF

Wesdome Gold Mines Ltd. is a Canadian-focused gold producer with two high grade underground assets, the Eagle River mine in Ontario and the Kiena mine in Quebec. The Company has an exploration program both underground and on the surface within the mine area and more regionally at both the Eagle River and Kiena Complex. The Eagle River Underground Mine is located 50 kilometers west of Wawa, Ontario. The Eagle River underground mine near Wawa, Ontario is producing gold at a rate of 80,000 to 90,000 ounces per year. The Kiena Mine is located in the highly prospective Val d’Or, Quebec gold camp. The Kiena Mine is a fully permitted, integrated mining and milling infrastructure which includes a 930-meter production shaft and 2,000 tons-per-day capacity mill. The Kiena Mine Complex consists of the Kiena Mine concession, Kiena Mill, related infrastructure and equipment and land position in the Township of Dubuisson, Quebec.


TSX:WDO - Post by User

Bullboard Posts
Comment by monmickon Mar 11, 2010 9:10am
319 Views
Post# 16869706

RE: Can Insider.. Any explanations here?

RE: Can Insider.. Any explanations here?I saw that earlier...

I think what he is doing is selling in advance of exercising his options to lock in a price. Say, for example, he has 8,000 options to buy at $1.50. The current price is at $2.20. What he is doing is short selling (it's a covered short sale) 8,000 shares at $2.20 fully expecting to exercise his options at $1.50 soon thereafter in order to cover his short. He is therefore locking in a (2.20-1.50) X 8,000 = $5,600 gain.

Just a timing issue, really...

Not sure whether the options were vested when he decided to short sell. If not, that would confirm the logic of the strategy...
Bullboard Posts